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Russian scientists reveal a groundbreaking scientific discovery that is expected to change every system built for the last millennia

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russian-scientists-gold-transmutation

In another challenge to the Khazarian Mafia’s Babylonian paper magick financial system and the entire pyramid of cartels, two Russian scientists revealed a groundbreaking scientific discovery that is expected to change every system built for the last millennia.

Chemical transmutation, specifically involving lead into gold, was first heard within the occult science known as alchemy. Then, it was that same occultism that continue to suppress using the “national security” all encompassing excuse against free energy activist John Bedini, who successfully transmuted copper into gold by using 5000 Celsius of heat, further explaining why countries above the Ring of Fire, like the Philippines, have so much natural gold deposit that’s been extracted by foreign mining firms decades ago.

To put it simply, there is more than one way to produce gold, naturally and artificially. And this very valuable element has more than one application, too, not just in the realm of electronics industry, but also within our physical well-being, and has been made part in man’s pursuit for longevity for thousands of years.

So, why is the knowledge pertaining to all of the above are not available up to now?

In a word, capitalism.

The profit oriented capitalism, in conjunction with the monetary based economic system, has aborted humanity’s march towards space age progress. It has deterred us from achieving our full potential.

All technologies that have been discovered, and are deliberately suppressed by patent acquisition and shelving, can make the existing control paradigm obsolete overnight. Those who are addicted to these control systems need to be neutralized if we are to make it to the next level of our evolution that’s been delayed for more than 100 years.

This is exactly what the BRICS countries are trying to do.

For the last several years since its inception, the BRICS tried several methods and strategies to start this paradigm shifting change that is not only expected to affect their own population, but that of the entire planet.

In order to weaken the clout of the Rothschild banking dynasty that is protecting the status quo, both Russia and China started buying vast quantities of gold available in the open market. This didn’t cause a significant increase on the price of gold and silver right away because those prices were already under intense systematic rigging in the first place, in order to protect the “integrity” of the legal tender, global exchange currency, i.e. Federal Reserve’s US dollar.

However, the stable and low gold prices only fed the desire of Russia and China to buy even more gold bullion using their huge reserve US dollars, a gradual yet deliberate dollar dumping, further undermining the already weakened Western economies. This resulted to the massive resignations of banking CEOs in the early part of 2012. These massive banking resignations were punctuated in June of the same year by World Bank President Zoellick and a year later by Pope Benedict XVI, the Vatican being at the apex of Corporatocracy and the entire fiat banking system on the planet.

Since then, the BRICS established direct exchanges using sovereign asset-based currencies to sustain their own economies while requiring others, especially the West, to do the same in exchange for their oil and industrial products.

Now, the financing world is separated between the East’s asset denominated and the West fiat based economies.

As the Brexit referendum was looming, Rothschild’s henchman George Soros invested heavily on Asian gold mines and made at least $2 trillion revenue overnight. This gives the Rothschild banking dynasty more fuel to sustain their sinister plans for the West, i.e. technocratic dictatorship.

So, how would humanity defeat a cunning enemy which is agile enough to play from one financial market into another, in a wink?

Since waging war is not a feasible option considering the possibility of a  nuclear MAD, or mutually assured destruction, the only option left would then be the total destruction of the financial system itself.

But how exactly should the BRICS do it?

Barely a few weeks ago, a conference was held in Geneva, Switzerland, purposely to announce the discovery of a method to transmute any element into another element in the periodic table, and beyond.

This discovery was made possible by two Russian theoretical and experimental scientists who were trying to figure out how to fuel a spacecraft using any element found in space. Now, that’s a good scientific excuse, indeed.

The transmutation process does not involve nuclear reaction and heavy water. The economic consequence of the industrial scale of such a process cannot be projected at this point, they say.

Vladislav Karabanov: “Today, here in Geneva, we are making public a discovery and a technology which without any exaggeration could be of historic significance.

The essence of this discovery and the technology boils down to the development of an industrial method for the transformation of chemical elements into other elements and their isotopes.

What we’ll have to show you today is the transmutation without nuclear reactors, without heavy water, or anything of the kind, to obtain a transmutation of elements. Our approach to transmutation of chemical elements is biochemical in nature.

It is still too early to fully grasp the economic and civilization significance of this technology. It would not be an exaggeration to say that this discovery is a veritable revolution that’s going to open a new chapter in our technological progress. Unlikely as it may sound, this is a fact.

The architects of this discovery and technology are leading Russian Chemists, Mrs. Tamara Sahno and Mr. Victor Kurashov. These are theoretical and experimental scientists who stand on the shoulders of a dynasty of researchers who have been instrumental in discovering these methods for the transformation of chemical methods.

Mankind, represented by the authors, has discovered this method for the transmutation of matter which is likely to change the face of today’s world, perhaps as deeply as it was changed by the use of electricity, perhaps even deeper.

The repercussions of this revolution will be felt in the energy sector, medicine, industry and perhaps would also open up new industries, brand new industries that will have enormous humanitarian implications.

What is most important to bear in mind is that what we are talking about here is a ready-made industrial approach that will be capable of producing target products in industrial quantities in a matter of months. With respect to the economic aspects of this discovery I am going to brief you about that later . . .”

Victor Kurashov: “Ladies and gentlemen, our work to develop the technology for the transmutation of chemical elements goes back to the early 90s. The very first results were obtained back in 1998, but the bulk of this effort and research, as well as hundreds of successful experiments fall on the Summer and Autumn of 2013.

Our further efforts involved patenting this work, and so for all these reasons we haven’t rushed to publish our findings until the patent was issued. We received the patent priority on the 15th of May 2014, whereas the patent itself was issued on the 25th of August 2015.

Let’s move onto the process itself very briefly. The first component used in the process is ore, or nuclear waste. The second component of the process are valuable valency metals such as vanadium, chromium, manganese, iron, cobalt, nickel, copper, zinc, and others. Either of these will do, but we tend to use iron as the least costly element. The third component and a factor in this process, these are bacteria. Usually we use iron and sulphur-reducing bacterial species which we select along a certain list of criteria, such as that the bacteria are active, that they are resistant to radiation, that they are adapted to a heavily salted solution — ore, suspended in water.

Now about the technology itself: ore, or nuclear waste (there’s no difference) is processed by bacteria in the presence of valuable valency elements in any closed vessel. The transmutation process kicks off immediately, and proceed stage by stage for two or three weeks until target elements are obtained. But if it is not stopped on time, this process would carry on until stable isotopes are obtained as the end product.”

The Russian patent RU 2563511 awarded to Mrs. Tamara Sahno and Mr. Victor Kurashov available at Google Patent repository says [in Google translation]:

“The invention relates to the field of biotechnology and chemical transmutation. Radioactive feedstock containing radioactive chemical elements or isotopes, treated with an aqueous suspension of bacteria of the genus Thiobacillus, in the presence of variable valence elements. As the use of radioactive materials or ore radioactive waste nuclear fuel cycle. The process leads to obtaining polonium, radon, France, radium, actinium, thorium, protactinium, uranium, neptunium, americium, nickel, manganese, bromine, hafnium, ytterbium, mercury, gold, platinum, and their isotopes. The invention allows to obtain valuable radioactive elements, to carry out the inactivation of nuclear waste from the conversion of waste radioactive isotopes of elements into stable isotopes. 2 ZP f-ly, 18 ill., 5 tab., 9 pr.

The invention relates to chemical transmutation of radioactive isotopes and transformation, that is to artificially produce some chemical elements from other elements. In particular, the method allows to obtain rare and valuable elements: polonium, radon, francium, radium, and actinides – actinium, thorium, protactinium, uranium, neptunium, and various isotopes of these and other elements.

Known transformation of chemical elements, the formation of new isotopes of elements and new chemical elements during nuclear fission and synthesis of chemical elements used in conventional nuclear rectors, in nuclear power plants (NPPs) in research nuclear reactors, for example, by irradiation of the chemical elements with neutrons or protons, or alpha particles.

A method of obtaining the radionuclide nickel-63 in the reactor from a target comprising obtaining enriched Nickel-62 nickel target, the irradiation target in the reactor, followed by enrichment of irradiated product from nickel-63 at extraction of nickel-64 isotope product (RU 2313149, 2007). The advantage of the method is to obtain a high quality product which is designed for use in stand-alone sources of electrical energy, in the detectors of explosives and so on. The reproducibility of the results was confirmed by the analysis of the isotopic composition of elements by mass spectrometry.

However, the method is complicated and unsafe degree requires industrial safety.

It is also known the transmutation of elements – long-lived radioactive nuclides, including those arising in irradiated nuclear fuel (RU 2415486, 2011). The method consists in irradiating neutron flux transmutable material, the irradiation is carried out with neutrons obtained in the nuclear fusion reactions in the pre-formed neutron source plasma, at a certain placement of the scattering medium neutrons. This method is based on the reactions of nuclear fusion in a tokamak is also complex and requires special equipment.

A method of obtaining radionuclides Th-228 and Ra-224, which is also implemented in a reactor technology. The technology is quite complex and has a safety limit (RU 2317607, 2008).

Thus, upon receipt of the chemical elements and their isotopes, in general, are conventionally used nuclear reactions involving nuclear reactors or other sophisticated equipment at high energy costs.

Attempts have been made to solve the problem of obtaining radioactive isotopes in the process of nuclear transmutation of elements more secure manner using the microorganisms.Known in particular isotopes conversion method using microorganisms comprising growing microbial culture Deinococcus radiodurans on a nutrient medium containing the necessary for transmutation of initial isotopic components, and deficient close chemical analogues of the target element. The composition of the medium is introduced, such starting isotopic components which are radioactive and transmutation process can lead to the formation of the target chemical element in the form of a stable or radioactive isotope, which is absorbed by the microbial culture and then remains steady or remains radioactive or decomposed to the desired stable isotope (RU 2002101281 A, 2003). This method does not provide a high yield of the desired isotope, and also requires the use of ionizing radiation as a trigger and response factor supports.

Also known process for the preparation of stable isotopes by nuclear transmutation type of cold fusion elements in microbial cultures (RU 2052223, 1996). The method consists in the fact that the cells of microorganisms are grown in a culture medium deficient isotope target (target isotopes) impact factors contributing to the destruction of the interatomic bonds and leading to an increase in its concentration of free atoms or ions of hydrogen isotopes. The medium is prepared on the basis of heavy water and injected into it scarce for the environment unstable isotopes that decay at the end to form the desired stable isotopes. As a factor that destroys the interatomic bonds using ionizing radiation. This method is based on the use of ionizing radiation, it is not designed for commercial scale requires a high energy and cost.

All of the chemical elements and their isotopes and by-products obtained until now complex and unsafe traditional methods by conventional nuclear reactions in small (sometimes – in micro) amounts clearly insufficient for the energy, industrial, industrial, technical and scientific needs of mankind. Described microbial process for the transmutation of chemical elements allows you to receive all of these chemical elements and their isotopes in almost unlimited quantities, simple to perform, safe for workers and the public, environmentally friendly way that does not require large material flow rates, heat, electricity and heating, while providing this energy, industrial, technical and scientific problems of civilization. These elements and isotopes are enormous reserves of energy, have an extremely high value and selling price on the market.

Microbiological method is proposed transmutation of the chemical elements and isotopes of chemical conversion elements, characterized in that the radioactive feedstock containing radioactive chemical elements or isotopes, treated with an aqueous suspension of bacteria of the genus Thiobacillus, in the presence of any s, p, d, f-elements with variable valency. Selection of elements with variable valence based on the principle of creating a high redox potential. That is, this selection key, or simply on the orientation of these or other elements of variable valency brought into the reaction medium, a redox potential value which is optimal in the range of 400-800 mV (for example, in Examples 1, 2, 3, 4 Eh = 635 mV, 798 mV, 753 mV and 717 mV, respectively).

Items with variable valence, as in the reduced and oxidized forms, creating a standard redox potential, involved in a start-up and control mechanisms of initiation and acceleration of alpha, beta minus and beta plus decay of radioactive isotopes of elements any kind of group of bacteria Thiobacillus.

The method leads to the production of polonium, radon, France, radium, actinium, thorium, protactinium, uranium, neptunium, americium and their isotopes as well as nickel, manganese, bromine, hafnium, ytterbium, mercury, gold, platinum, and their isotopes. As radioactive materials containing radioactive chemical elements can be used ore or radioactive nuclear waste cycles…”

Producing the right element is one thing, using it is another. In conjunction with this discovery, Russia also released the availability of its first 3D metal printer…

The Mindblowing Consequence of this Discovery

There’s no doubt that there will be a creative explosion all over the planet when all of these technologies and equipments are made available on the market soon.

When there’s an oversupply of any element, naturally the price of that element will go down to the point of insignificance, the anathema to the scarcity based economic system that we are forced to swallow.

Beside its scientifically groundbreaking significance, the conference was also held in the headquarter of the global banking industry and political epicenter of the West, which should repel all notion of it being just a mere Russian propaganda, or

… that turning iron or lead into gold is not fringe science at all, but real and replicable, and the technology to do it is officially available to the world.

In the final analysis, the full utilization of all scientific discoveries could make all conventional institutions, e.g. educational, banking and finance, religion, and even the police and military, obsolete.

The future is within our grasp. We just need to support the right science to make it happen.

Aside from the fiat monetary scam and bloodsoaked petrodollar, another significant source of funds for the Nazionist Khazarian Mafia is the “healthcare” industry which registered a whopping $3.09 trillion in 2014, and is projected to soar to $3.57 trillion in 2017, in the US alone. We believe that this is just a conservative figure.

We can avoid using drugs, defeat any viral attack and scaremongering, like the Zika virus, easily by knowing how to build our own comprehensive antiviral system. Find more about how we can kill three birds with one stone, right here.

Delta Warns of Chaos After Power Outage, Worldwide System Failure

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Tens of thousands of Delta passengers around the world were stranded Monday after a power outage at its Atlanta headquarters caused a global computer failure that halted all flights.

Check-in systems, airport screens and even the airline's website and smartphone apps were affected by the meltdown, which began at 2:38 a.m. ET and lasted six hours.

The airline suspended departures, with airport agents writing out boarding passes by hand. "Our systems are down everywhere," it told customers on Twitter.

The outage ended at about 8:30 a.m. ET, with "limited" resumption of flights. By 1:30 p.m. ET, some 451 flights had been canceled and less than 1,700 of its 6,000 scheduled flights were in operation, the airline said.

Customers were warned that major delays and cancellations would continue.

Delta CEO Ed Bastian apologized to customers, saying in a video posted to Twitter that workers were working "around the clock" to restore operations. He also said the company had waived fees for changing flights.

Thousands have already spent the night on airport floors. The airline is allowing passengers to rebook for travel as late as Friday to avoid the chaos.

Image: At Los Angeles, passengers on late-evening redeye flights to the East Coast to were taken back to the terminal where they were still waiting for information at 3 a.m. PT.
At Los Angeles, passengers on late-evening redeye flights to the East Coast to were taken back to the terminal where they were still waiting for information at 3 a.m. PT. David Hamann / Twitter

At Los Angeles and San Francisco, passengers on Sunday night's red-eye flights to JFK and Atlanta were taken off planes and led back into terminals to be given blankets and water.

In Las Vegas, some passengers slept on the floor near departure gates awaiting updates from the airline, while at Pittsburgh a long line snaked toward the ticketing counter.

Cynthia Towles, who was at Newark Airport on her way to St. Thomas in the U.S. Virgin Islands, told WNBC: "They didn't tell us anything. I didn't get an email, I didn't get anything. Nothing."

U.S.-bound passengers at Rome's Fiumicino Airport told NBC News they had waited more than an hour to check in.

There were similar delays in Tokyo and London, where staff handed out bottles of water to passengers who had been waiting hours in line.

Amanda Jackson waited more than 90 minutes at London Heathrow to check in for a flight to Seattle on her way to Alaska. She reported long lines at Delta counters, along with "a lot of very frustrated people."

Image: A handwritten Delta boarding pass, issued because the airline's computer system is down, given to passenger Rob Stephenson, 42, of Ann Arbor, Michigan at London's Heathrow Airport.
A handwritten Delta boarding pass, issued because the airline's computer system is down, given to passenger Rob Stephenson, 42, of Ann Arbor, Michigan at London's Heathrow Airport. Rob Stephenson

Luciano Resende, 40, had been waiting for at least two hours at Heathrow as of 4:40 a.m. ET. He was attempting to make the trip back home to San Francisco via Seattle.

He said airline employees started to manually check-in customers for their their flights but progress had been slow. "I guess it has been a long time since they used the manual process," Resende told NBC News.

At Tokyo's Narita airport, passenger Brett LaBare endured a delay of more than five hours until his flight to LAX was eventually canceled because the crew exceeded their safety-related working hours limit.

"A Delta ground stop has been lifted and limited departures are resuming following a power outage in Atlanta that impacted Delta computer systems and operations worldwide," the airline said in an 8:40 a.m. ET update. "Cancellations and delays continue."

It added: "Customers heading to the airport should expect delays and cancellations. There may also be some lag time in the display of accurate flight status at delta.com, the Fly Delta App and from Delta representatives on the phone and in airport."

Last month, Southwest Airlines canceled more than 2,000 flights over several days after an outage that it blamed on a faulty network router.

Houston Is Sinking

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The Chicot and Evangeline aquifers along the Texas Gulf Coast weren’t able to naturally replenish the groundwater supply. Loose groundwater regulations at the time certainly didn’t help, and the eventual switch to surface water was too late because the damage had been done — according to United States Geological Survey data, approximately 4,700 square miles of land in and near Baytown and Pasadena sank by at least six feet between the years 1943 and 1973.

Eventually, Brownwood went kaput. Today, the area houses the Baytown Nature Center, where joggers, baby-stroller-pushing families and resident fowl play on top of the remains of two-story homes and swimming pools.

History is repeating-ish itself all over Houston, including in an area northeast of Addicks Reservoir, one of two dams in far west Houston that the United States Corps of Engineers, in 2009, labeled with an ominous “extremely high risk of catastrophic failure” warning.

The U.S. Geological Survey's Hydrogeology and Simulation of Groundwater Flow and Land-Surface Subsidence in the Northern Part of the Gulf Coast Aquifer System, Texas, 1891-2009 shows the sunken areas of Houston and its surrounding areas.

The U.S. Geological Survey's Hydrogeology and Simulation of Groundwater Flow and Land-Surface Subsidence in the Northern Part of the Gulf Coast Aquifer System, Texas, 1891-2009 shows the sunken areas of Houston and its surrounding areas.
Courtesy of David Todd/U.S. Geological Survey map by Mark Kasmarek
According to a December 2013 U.S. Geological Survey map that was recently published in David Todd’s and Jonathan Ogren’s book The Texas Landscape Project: Nature and People (Texas A&M University Press), an area in far northwest Harris County sank by seven feet between 1891 and 2009.

“Imagine a really flat tabletop and you’ve got a dent in the middle of the table that’s seven feet deep. If you pour water in that hole, it’s not going to drain,” says Todd, an Austin-based environmental attorney and executive director of the Conservation History Association of Texas.

“Also, big residential subdivisions have been built nearby…and it has been expensive and difficult to get water to the west side of town so they must rely on groundwater and wells,” says Todd, who, along with Ogren, a University of Texas at Austin lecturer, recently published the visual-heavy The Texas Landscape Project, a book that acts as an environmental-history atlas for the entire state.

The subsidence problem is exacerbated because Houston's mega-metropolis is built on clay, which doesn’t contain the stability of bedrock. As more groundwater is removed from beneath the surface, the clay cracks and shrinks.

“And then the ground drops,” says Todd, something that communities like Jersey Village have known about for a minute.

“The clay shrinks when any sulfur, fluid or gas is pulled out,” says Todd. “This subsidence has altered upland drainage patterns, exposed coastal areas to storm surge and, in those ways, raised flood risks for the Houston region.”

In short, humans = yet another fail.

ES Morning Update August 11th 2016

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Looking at the SPX cash they seem to be swinging up down from overbought to oversold on the short term charts (like the 60 minute chart and shorter) while holding the price level up.  The same thing is happening on this ES Futures chart  as we went down yesterday to stop at horizontal support and are now back up this morning.

This churn sideways to slightly high is a sign of distribution but it kills option traders due to the time decay.  In fact I don't think any traders like a sideways market as it's hard too make money no matter what style of trading you are doing.  Only the big boys that buy millions of shares at big lows make money as they slowly unload their shares everyday to the retail public.  And it will likely continue to trade sideways to slightly up until they are done unloading and flip to shorting the market.

When will this happen you ask?  Probably when the main stream media flips from bearish stories to bullish one's.  Right now I still see to much bearish talk out there.  Even Goldman Sucks is telling everyone to expect a big correction in the next 3 months.  Of course they are telling us this at the wrong time because they know how long this grind sideways to up will last and need bears to come on board short so they can squeeze them.

Without the bears shorting this market would have already collapsed.  It's only them that's keeping it flat to up.  Once the bears go long the top will be in, but when will that happen is the question?  I wish I knew the answer but I don't.  Too me it feels like they want to go a little higher, like up to hit the "possible" FP on the QQQ's from several days ago and the old FP's on Apple in the 109 area.  They must have put out that 109 print for several days in row over a month ago.  I didn't believe it was accurate as Apple was down in the low 90's then and looked bearish.  But we hit 108.94 as a high on it yesterday, which is pretty close to one of the lower 109 FP's.  They put out several and they were all in the 109 area, some lower and some higher.  So I can only guess that it was a "around this area target".

I don't know if it was "close enough" yesterday or not, but considering the recent FP on the QQQ's of 118.77, and the fact that we only hit 117.29 yesterday, I'd have to think that we are NOT close enough yet and will therefore continue this grind until we reach it and one of the Apple FP's in the 109 area.  I don't have must else to go on here as technical analysis isn't too accurate in this extremely light volume, and wave counting seems useless as well.  So the FP's are what I'm left with looking at and we do know they are signals from the insiders as to where they plan to take the market too... but unfortunately I don't know how to read them correctly to get the exact date they will be hit one.  So today we'll see if they continue higher or rollover and start our pullback.  Right now it looks like more of the same summer boredom.

The great carbon pricing deception

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trudeau-cop21-120515Canadian Prime Minister Justin Trudeau. (THE CANADIAN PRESS/Adrian Wyld)

Our governments keep telling us that to reduce industrial greenhouse gas (GHG) emissions linked to man-made climate change, they need more of our money. It’s a ridiculous argument.

The amount of money governments will take from us through carbon pricing -- whether by a carbon tax or cap-and-trade, which is a carbon tax by another name -- has nothing to do with whether emissions will fall.

justin trudeau

We all know when governments get more of our money through carbon pricing, they’ll do what they always do:

They’ll try and fail to pick economic winners and losers.

They’ll subsidize corporations and other special interests in return for their political support.

They’ll waste it on programs that have nothing to do with reducing emissions, like “green” infrastructure.

In reality, the best chance they have of lowering emissions is through a carbon pricing plan known as carbon fee and dividend.

It’s 100% revenue neutral. Government revenues don’t increase by a dollar.

Instead, governments raise taxes on consumption -- sales taxes -- and return all the money to the public through regular dividend cheques, income tax cuts, or a combination of the two.

Carbon fee and dividend isn’t about increasing government revenues, but lowering GHG emissions.

By increasing the cost of goods and services using fossil fuel energy -- meaning virtually all of them -- the government creates a consumer demand for products that consume less energy and are therefore less expensive.

Businesses respond to this demand through innovation in order to increase profits and market share.

Returning 100% of the money governments raise through increased sales taxes in income tax cuts and/or dividend cheques, helps people cope with the higher cost of living carbon pricing brings.

Because the government doesn’t get any extra revenue from the public under a revenue neutral carbon fee and dividend policy, it can’t then throw it at giant corporations and special interest groups to buy their political support for it.

That’s why no government in Canada is advocating a revenue neutral, carbon fee and dividend plan, although B.C. comes closest.

This process still uses the tax system to influence human behaviour. It's still big government at work.

But if politicians were sincere about lowering emissions, this is the route they'd take.


As I said previous guys in this post (http://reddragonleo.com/2016/07/29/democratic-platform-calls-for-carbon-tax-just-like-matt-taibbi-spoke-about-several-years-ago/) the gangsters are heavily pushing this next scheme so they can start the next stock market bubble.  Don't fall for it as it's all a scam.

Red

 

ES Morning Update August 10th 2016

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Ok gang, I'm going to keep this short and simple (as today is my 52nd birthday).  The QQQ's had a FP a few days ago of 118.77 and Apple had multiple FP's in the 109 area a month or so back.  Since the futures haven't fallen and are just up slightly I can only think that today is going to be another boring day while they try to push the market up a little more to meet their target areas.  So I'll just be watching the QQQ's and Apple for clues as when they hit their FP's the ES Futures might be at 2190 or so.  That would be when I'd "think" about shorting again.  Until those FP's are hit I'm just sitting on the sidelines (and eating cake and ice cream... LOL).

The U.S. Economy Is Suffering From the Same Old Problem

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A pair of better than expected non-farm payrolls reports affirms that the U.S. economy doesn't have a new problem, that is, a rapid slowdown in job growth  just the same old one: sluggish productivity.

And monetary policymakers will be aiming to ensure that this blight on the U.S. economy disappears as labor slack continues to diminish, according to a Deutsche Bank AG team led by Dominic Konstam. That's because continued low productivity growth likely entails that businesses aren't boosting capital spending to increase output at a time when another input to the production process  labor  is becoming more scarce and more expensive.

One "implication of stubbornly low productivity is that it is critically important for the Fed[eral Reserve] to protect aggregate demand, particularly as the pace of payroll expansion slows with full employment looming," he writes.

Heading into the second quarter of 2016, quarter-on-quarter productivity growth, a measure of the change in output per hour worked, has averaged just 0.7 percent over the past four readings, well shy of its long-run average of 2.2 percent.

Economists expect non-farm productivity to rise 0.4 percent quarter-over-quarter in the second quarter, with fresh data released at 8:30am New York time.

Increases in economic output can only be garnered by boosting the number of aggregate hours worked or by producing more goods and services per hour worked.

The greying of the U.S. population is poised to put the brakes on the rate of growth of labor input as boomers exit the work force. As such, in the absence of productivity growth, the economy might not see much growth at all.

But the Fed is cognizant of the need to have a clean hand-off between a labor market that's running out of slack and capital deepening to help boost productivity, according to Konstam.

"The logic is quite simple: the corporate sector is unlikely to increase investment in the absence of strong (global) final demand, and investment has historically been a requisite for rising productivity," the strategist writes. "The thorny fact is that employees are also consumers, so too much slowing in employment growth could easily depress demand."

A need to spur productivity growth helps explain the Fed's focus on the state of financial conditions, as the level of interest rates, credit spreads, the U.S. dollar, and stock prices, will presumably influence corporate investment decisions  and suggests that the central bank's concerns over these variables won't abate any time soon.

"As long as the labor market is healthy, the Fed could raise rates modestly, but must take care not to create headwinds for aggregate demand that could impede a transition to productivity driven growth," cautions Konstam. "Any new headwinds created by Fed tightening would likely reinforce the existing (downward) trend in real private investment."

The manifold headwinds on productivity growth (a mass retirement of the most experienced workers, a prolonged period of rising oil prices before a sharp retreat, the slow integration of new innovative technologies into the production process, and above all, soft business investment) means policy rates will stay even lower throughout this cycle than the subdued levels monetary policymakers think they'll eventually reach over the long haul, according to Bank of America Merrill Lynch analysts.

"Along with a drop in potential [growth] comes a decline in the equilibrium interest rate. In real terms assuming 2 percent target inflation the Fed has penciled in a long-term real R* of 1 percent with the short-run hovering close to zero," writes BofA's Michelle Meyer, with R* referring to the long-run level of the federal funds rate at which the Fed believes monetary policy would neither be stimulative nor contractionary. "Given the nature of this cycle, we are unlikely to actually reach this estimate of long-run R*."

A pick-up in capital spending by businesses will presumably foster a commensurate rise in productivity, which would allow even companies without a large deal of pricing power to avoid choosing between pressuring their profit margins or raising costs for their customers.

Otherwise, as the Deutsche Bank team writes, "this could well be a cycle that does indeed die of old age," with Corporate America electing to cut jobs to maintain profitability and ultimately fostering a downturn in consumer spending.

New iPhone to Have Dual Camera but No Headphone Jack

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Apple Inc. is preparing to unveil successors to the iPhone 6S and iPhone 6S Plus as early as next month with more advanced photography capabilities and upgraded hardware in a design similar to that of last years models, according to people familiar with the matter.

The standout features will be a dual-camera system on the larger iPhone, a re-engineered home button that responds to pressure with a vibrating sensation rather than a true physical click and the removal of the devices headphone jack, said the people, who didnt want to be identified discussing unannounced features. Apple declined to comment.

While iPhone demand has waned in recent quarters, partly due to the lull between product launches, the device continues to be the major source of Apples revenue. The new models will be critical to the holiday quarter, and Apple is counting on the phones to prop up sales ahead of an expected iPhone overhaul in 2017, the devices 10th anniversary.

Moving away from the typical two-year iPhone redesign cycle, this years models will look similar to the 6 and 6S, the people said, who added that there will still be noticeable tweaks. The new iPhones will retain the same 4.7-inch and 5.5-inch screen sizes as their predecessors, the first of which was introduced in September 2014. Apple will remove the two innermost antenna lines that run across the back of the current iPhones, the people added.

Sharper Photos

The dual cameras on the larger new iPhone will produce brighter photos with more detail, according to a person who has used a prototype version of the upcoming device. Both sensors, which each capture color differently, simultaneously take a picture, and the device produces a single, merged photograph, said the person.

The dual system sharpens photos taken in low-light environments, the person said. The combination of the merged photos from the two camera sensors also allows users to zoom while retaining more clarity, the person added. The smaller version of the new phones will not include dual lenses, KGI Securities analyst Ming-Chi Kuo said earlier this year.

Home Button

Apple is planning an updated home button for the new models. Current home buttons are switches that physically press into the phone, but the new models will have a pressure-sensitive button that employs so-called haptic feedback, according to the people. This mechanism is similar to that of the trackpads on the latest MacBook line. 9to5Mac reported on the home button design earlier.

The new iPhones will remove the headphone jack in favor of connectivity via Bluetooth and the charging port. That will make room for a second speaker, said the people. Apple started allowing headphone makers to build headphones that can connect via the iPhones charger connector in 2014, the same year the company acquired headphone maker Beats Electronics. Macotakara earlier reported the headphone jacks demise.

The new models will run iOS 10, the new version of Apples mobile operating system coming this fall. The updated software offers interactive widgets to quickly glance at calendar appointments and favorite contacts, new messaging features, a new application for controlling smart home appliances, and a redesigned Apple Music. The new software will also run on current and some past iPhone models.

Apples shares were little changed at $107.78 at 9:36 a.m. in New York. The stock was up 2.1 percent this year through Friday.

 

Tuition-free college: What students really think about the idea

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If you have debt, work multiple jobs to pay for tuition and wish college was free, you’re not alone.

A recent Bankrate survey of one thousand people found that 62% of Americans support free tuition at public colleges. And that number is even higher among 18- to 29-year-olds, with 77% in favor of tuition-free education.

It’s no secret that tuition and student debt have been on the rise in recent years.

Between 2014 and 2015, tuition rose 3.6% and 2.9% at private and public colleges, respectively, according to the College Board. Over the past ten years, the increase rate has hovered near 5%. National student debt, meanwhile, has passed $1.3 trillion and continues to climb by thousands of dollars per second, according to MarketWatch’s running counter.

Making college more affordable and student debt less debilitating matters to young voters more now than perhaps ever before, which is why they’re keeping a close eye on the presidential candidates’ prospective policies.

(Graphic: Walbert Castillo)

Over the course of five years, Hillary Clinton would implement a system in which students from families with an annual income of less than $125,000 can attend in-state public colleges or universities at no cost. As the program phases out, immediate attention would be given to students whose families make less than $85,000 annually.

Donald Trump, meanwhile, would take government out of the equation entirely and privatize student loans. In other words, he would have banks handle all student loans. This, he argues, would create more competition among banks and relieve pressure on student loan interest rates.

But some students say successfully tackling the issue requires nuanced thinking. While the majority of those who spoke with USA TODAY College are on board with the concept of tuition-free college, they say other economic factors should be considered before putting proposals into practice.

Herbie Bolimovsky, a senior at the University of Rochester who pays $65,346 per year in tuition, says he would feel more comfortable taking a firm stance on a tuition-free system after seeing an assessment of the proposed policy, which he thinks would require extensive economic research and “in-depth studies.”

Rising University of Virginia senior Brandon Brooks comes from a family that earns close to $125,000 annually, per his estimations. He pays UVA’s in-state tuition of $28,924 primarily through student loans and says he “would probably support Congress using taxpayer money” to make free tuition a reality.

“Free college sounds great — so does free pizza.”

Though Brooks says the policy should come with a stipulation that doubles as an incentive: Students must earn a 3.0 GPA to remain eligible. And even then, he still has concerns.

Brooks says he worries students from low-income families wouldn’t get the leg up they need to succeed with a tuition-free system, citing a recent Brookings Institute study that found the middle and upper middle classes would benefit more than the lower classes. This, he says, sets up students from low-income families for lifelong financial struggle.

“You essentially need a college degree to get a well-paying job,” the political science student says.

Alex Greene, a recent graduate of Hunter College ($6,030 for in-state students), agrees that “everyone should benefit” from a tuition-free system, but says he ultimately finds the concept “really problematic.” The current University of Pennsylvania law student says he wouldn’t want to subsidize the tuitions of students who cannot afford college.

And Griffin Anderson, a rising senior at George Mason University, which costs $11,214 for in-state students, says there’s no simple solution to the problem.

“I can understand the argument for tuition free college,” says Anderson, who estimates his family’s an annual income exceeds $125,000. “But I don’t think (college) should be 100% tuition-free.”

That’s because students who pay their way through schools, he says, ultimately “gain life experience.” But if the government were to implement a tuition-free system, Anderson says it needs to make sure “it’s something that we’re going to be able to pay for with whatever tax revenue we’re allocating to it” — in other words, that it’s a “financially responsible” move.

A simple solution to this complex problem may not exist, but Bolimovsky has just one more small request for lawmakers’ looking to ease the financial burden on students:

“Free college sounds great — so does free pizza.”

Jacob Sonenshine is a student at Hunter College and a USA TODAY College correspondent.

 

Carvana raises a $160M Series C to expand its online dealership and car vending machines nationwide

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The used car industry is an interesting business. The market is huge – 45 million used cars are bought each year in the U.S. But the biggest player, CarMax, only controls about 2% of the market – but is still valued at about $12 billion by Wall Street.

So that makes the market not only ripe for disruption, but also extremely lucrative.

Carvana is a used car dealer that thinks it can gain some of this marketshare by bringing an e-commerce approach to the industry. The startup, which we’ve covered before, has brought the entire sales process online. And today the startup is announcing that is has raised a $160M series C to further expand its model across the United States.

A prospective car buyers stars on Carvana’s website, and picks out the exact car they want. The company offers cars in almost every body style and price range, and had about 5,000 available as of last night. There’s no bargaining, but the company consistently offers prices a few thousand dollars better then Kelly Blue Book’s suggested retail price (and lets you compare the two).

All financing and paperwork gets done online, and you have the choice of either having your car delivered or available for pickup at one of the company’s “car vending machines”.

What’s a car vending machine? It’s literally a big glass building that automatically dispenses a car that is preloaded by the company in the days prior to the customer picking it up. Carvana opened their first one in Nashville last year, and will use this funding to open more around the country.

Does a car vending machine sound gimmicky? Of course. But the company explained that it also has a practical purpose, besides being great for advertising. The status quo for Carvana is currently to deliver your new car to your door, which obviously costs more than having you pick it up. So by building a car vending machine in each city the company can save the money they would spend on having employees delivery it to your door.

This $160M in funding follows $140M in equity and $400M in debt previously raised by the company. While Carvana won’t disclose specific investors, they have said that the round had participation from both new and existing institutional investors.

Like previous funding rounds, growth and expansion is where Carvana is planning on spending this money. But with this new funding they are planning to expand and have readily available inventory in over 20+ markets by the end of the year, which will probably require them to shell out a ton of cash for a ton of used cars.

Plus, the company needs to build more physical locations to store (and possibly vend) cars in each of these new cities. As Ernie Garcia, founder and CEO of the company explained, they could choose to grow slower with much less capital, but Carvana (and their investors) believe that they found a solid business model, and want to ramp up and strike while the iron is hot.

Delta: ‘Large-scale cancellations’ after crippling power outage

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Delta grounds departing flights due to system outage The week got off to a bad start for Delta passengers.

Delta Air Lines flights were grounded for at least six hours early Monday by a global computer system outage, causing large-scale cancellations and stranding hundreds of thousands of passengers.

At 8:40 a.m. ET, Delta said the ground stop had been lifted but that only "limited" departures had resumed. It's expected that flights will be delayed and canceled throughout the day.

"Customers heading to the airport should expect delays and cancellations," Delta warned. "While inquiries are high and wait times are long, our customer service agents are doing everything they can to assist."

Delta(DAL), the world's second largest airline, said the problem was a power outage at its Atlanta hub.

The number of flights and passengers affected by the problem was not immediately available. But Delta, on average, operates about 15,000 daily flights, carrying an average of 550,000 daily passengers during the summer.

The cause of the power outage was not immediately known. U.S. law enforcement officials are working with Delta, a U.S. official told CNN. But there are no indications that a computer hack is responsible. Delta has given indications it does not believe it was hacked.

Getting information on the status of flights was particularly frustrating for passengers.

Delta conceded it was having trouble providing accurate flight status on airport departure boards, at delta.com, the Fly Delta App and from Delta representatives on the phone.

The airline said if a flight is canceled or significantly delayed, passengers will be entitled to a refund, though it did not specify what is considered "significantly" delayed.

Even passengers booked on a flight Monday whose flights are not canceled can make a one-time change to their tickets without the normal fee. But they could have to pay the difference in fare for a new flight. They will need to start travel by this Friday to benefit from the lack of a change fee.

The Joseph family from Suffern, New York, arrived at LaGuardia Airport in New York for a flight to Orlando, the start of a vacation to Disney World for their six children.

"Delta is just saying the systems are down and we are going to be late," said Frantzy Joseph, the family's father.

"We're feeling OK. We're excited to go Disneyworld. We just want to catch the flight," said Claudia Joseph, the family's mother.

Passengers on Twitter reported problems -- including the inability to check in or being stuck on the tarmac -- from airports around the world, including San Francisco, Rome and Athens.

"The airline provided passengers with little information," said New Yorker Carly Hayes, who was due to travel from Fiumicino Airport in Rome to New York's JFK, in an Instagram post.

Jackie Watanabe, who was due to travel from Las Vegas to Minneapolis, tweeted that the airline was handing out blankets to passengers who wanted to get some sleep on the floor of the terminal there.

"I'm not ready to go into camping mode yet, but other passengers are," she said, tweeting a photo of sleeping passengers.

delta delays jackie wantabe

Sean Carson, due to travel from Kona, Hawaii, to Los Angeles, said he had been on a plane for more than four hours. He told CNN the pilot announced earlier that pizza was being delivered.

Reports of delays on social media appeared to have begun around 3 a.m. ET.

Delta's problems come less than three weeks after Southwest Airlines canceled more than 1,000 flights following a system outage.

Facebook takes aim at ad-blocking software

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facebook screenFacebook has fired a warning shot at ad-blocking software by making changes that will force desktop users to see adverts.

The rising popularity of ad-blockers poses a threat to online businesses that rely on advertising revenue.

The social network told users it understood how annoying ads could be.

It promised to better offer tools for controlling what material does make it through to users' newsfeeds.

"As we offer people more powerful controls, we'll also begin showing ads on Facebook desktop for people who currently use ad blocking software," said Facebook's advertising vice-president Andrew Bosworth in a blog post.

Users will be allowed to customize the types of adverts they see by selecting the brands and businesses they prefer.

"People don't like to see ads that are irrelevant to them or that disrupt or break their experience," Mr Bosworth added.

Ad-blockers do not usually work on mobile devices, which account for most visits to Facebook, but nevertheless prevent advertising worth billions from being seen.

Facebook generated $6.2bn (£4.7bn) in revenue from adverting in the most recent quarter.

About 200 million people worldwide use ad-blocking software on their computers.

The move is likely to rekindle a debate between content providers that rely on advertising revenue and users trying to avoid unwanted commercials.

This is not Facebook's first step at controlling what users see in their newsfeeds.

Earlier this month it took steps to limit "clickbait" stories - articles that carry headlines that make a story seem more interesting than it actually is.

Wholesale inventories up 0.3% in June

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A forklift operator loads a semi-trailer with pallets of seasoning at the Badia Spices factory in Doral, Florida.

A forklift operator loads a semi-trailer with pallets of seasoning at the Badia Spices factory in Doral, Florida.

U.S. wholesale inventories unexpectedly rose in June on gains in stocks of farm products and other nondurable goods, suggesting an upward revision to the second-quarter economic growth estimate.

The Commerce Department said on Tuesday that wholesale inventories increased 0.3 percent after having been initially estimated as unchanged. Inventories for May were revised up to show a 0.2 percent rise instead of the previously reported 0.1 percent gain.

Economists had forecast wholesale inventories unchanged in June in line with the government's estimate last month. That unchanged reading was incorporated in the advance second-quarter gross domestic product estimate published last month.

The component of wholesale inventories that goes into the calculation of GDP—wholesale stocks excluding autos—increased 0.3 percent in June. That would imply a mild upward revision to the second-quarter GDP growth estimate.

An outright drop in inventory investment subtracted almost 1.2 percentage points from GDP growth in the second quarter, restricting the rise in output to a tepid 1.2 percent annualized rate. Inventories have weighed on GDP growth since the second quarter of 2015 as businesses sell piles of unwanted goods.

In June, wholesale stocks of farm products increased 4.0 percent after rising 6.2 percent in May. Wholesale inventories of drugs surged 4.9 percent after declining 3.8 percent in May. Auto inventories dipped 0.1 percent in June.

Sales at wholesalers jumped 1.9 percent after rising 0.7 percent in May. In June, it would have taken wholesalers 1.33 months to clear shelves, down from 1.35 months in May.

What are markets doing? Check here.

ES Morning Update August 9th 2016

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The futures are riding this rising trendline of support still.

The MACD's on this 2 hour chart look ready to turn back up.

Yesterday we had only of the lightest trading days on the SPY that I could find going back the 5 years I looked.  It probably was even longer then that but I never bothered to check.  Point being is that it's very hard for the market to breakdown when the volume is so light.  So even if this rising trendline of support breaks that horizontal support zone around 2160-2170 will be tough to get through.

However, we do still have that FP on the SPY from last Thursday and if that's the downside target then that 2160 support zone will be broken of course.  I'm not sure why I'm talking about the downside as it feels like the Fed's have erased that word from trading and only allow the market to go up.  Every resistance on the upside seems to get broken and all support on the downside holds.  So, assuming nothing changes, we should be looking up I guess as they seem to want 2200 pretty badly.  I don't have any levels on the upside though as we are at all time highs with no resistance above as we've never been this high.  All we have are the even number targets like 2200.  I'm sure there's more levels from rising trendlines but there's no point discussing them until we are up closer.  For now we just know the market wants 2200 pretty badly.

History tells me that when the market wants to get to some even number level (like 2000, 2100, 2200, etc... on the SPX, or 17,000... 18,000... etc... on the DOW) it does this one of two ways.  It will fall short of the target by 10-20 points or pierce through it 15-25 points.  I've noticed this happened many times in the past.  When the market wanted 2000 it stopped at 1991 or so (7/23/2014), then it pulled back and ran back up again to finally bust through and stop at 2019 (9/19/2014).  At that point it rolled over and had a nice correction.

Then later the market wanted 2100 and that time it stopped at 2093 (12/29/2014) and had a nice correction (it also had a nice correction prior to that by stopping at 2079 on 12/5/2014).  Yesterday we tagged 2185 on the SPX Cash, so do we pullback slightly for a day or two and then run back up to hit 2215-2225 and then have a nice correction?  Or do we fail to hit 2200 right now and start a nice correction this week?  Pattern rarely repeat exactly but they are similar, so one of those two scenario's is likely to happen.  We either will start a nice correction by falling short of it or push through it this week and then start a nice correction.  Which one I don't know but if it starts down now (falling short) then the "nice correction" should be 80-100 SPX points.

ES Morning Update August 8th 2016

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Good Morning Everyone.  This Monday morning I'm at a lost for words after the squeeze on Friday.  Again, it looks a lot like the August 26th, 2014 to September 19th, 2014 move.  The only thing missing is the long topping tail candle close on the daily chart.  About a month or so back there were several days of FP's coming out on Apple and I didn't know what to think about them?  I few were in the 101 area but there were many in the 109 area and even one down in the 83 area if I recall?

At the time we where in the mid 90's on Apple and I didn't think there'd be any chance that we'd see 109 on it.  But here we are a month later and Apple is in the mid 107's as of Friday's close, and looks destine to hit 109.  I remember stating back then that I didn't have enough history on FP's that show up on individual stocks as everything I had seen previously was on the ETF's like the SPY, QQQ or IWM.  Now we have some history forming on Apple but it's still not much help as I do not know how to read the FP's to find out the most important code from it... and that's the "When" part.

Moving on to today...  there's a FP on SPY showing 214.25 that I spotted Thursday and posted in the chatroom.  But again, the "When" part is unknown?  I could only add that "if" we go up another 5-15 points today/tomorrow on the ES Futures and Apple hit's that 109 FP... and then drop back into the close to put in a long topping tail, then we should expect the downside target to be that new FP on the SPY.  That looks to be around 2140 on the SPX Cash and about 4-5 points lower on the ES Futures.  It's basically a retest of the Thursday low where the futures hit 2141.50, but slightly lower... meaning a pierce through that level is likely.  Doesn't mean we stop there and turn back up, nor does it mean we continue down.  The FP on the SPY only says we are going to hit that level at some point in the future (and most likely the near future).

OPEC oil freeze talks may be resurrected

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EPA AUSTRIA ECONOMY OPEC EBF ENERGY & RESOURCES AUT

The Organization of the Petroleum Exporting Countries may resurrect its heretofore futile attempts to freeze petroleum output in a bid to inject life into oil prices.

OPEC member countries will hold an informal meeting "on the sidelines" of the International Energy Forum from Sept. 26-28 in Algeria, the organization said Monday in a statement.

The meeting comes about a week after oil prices briefly tumbled below $40 per barrel amid renewed fears of a global glut of oil, which had sent the commodity spiraling below $30 per barrel earlier this year before a sharp rebound to above $50 enticed some producers to get back in the game.

OPEC countries have considered an output freeze multiple times over the last year, but have failed to reach a consensus each time, including the latest attempt in June. The group's stranglehold on global oil prices has loosened in recent years amid political tension between Saudi Arabia and Iran, the surge of U.S. production and concerns about global economic growth.

"OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market," OPEC said Monday.

Despite the stalemate that has gripped OPEC at recent meetings, traders appeared encouraged by the prospect of fresh talks over a deal. The price of West Texas Intermediate oil, the U.S. benchmark, rose 2.1% to $42.66 at 8:17 a.m. Brent crude, the global benchmark, rose 1.9% to $45.09.

"While the last try a few months ago failed spectacularly, declarations from some OPEC countries indicate that another stab at cooperation on a freeze deal may be attempted in September," JBC Energy analysts said Monday in a research note. "This is indicative of the significant pressure some of these producers are under in terms of their economies."

Any encouragement drawn from the possibility of an OPEC freeze may be offset by the prospect of additional U.S. production coming online.

The number of active U.S. oil rigs is up 21% since its May low, according to Goldman Sachs. More U.S. oil could keep prices low.

Bitfinex users set to lose 36% of their holding in bitcoin hack

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A man walks out of a shop displaying a bitcoin sign during the opening ceremony of the first bitcoin retail shop in Hong Kong.A man walks out of a shop displaying a bitcoin sign during the opening ceremony of the first bitcoin retail shop in Hong Kong.

Bitfinex allows users to trade in several different digital currencies, including bitcoin, and deposit U.S. dollars in their account.

A total of 119,756 bitcoins, worth $70.5 million at today's price, were stolen as a result of a cybersecurity breach.

Bitfinex's decision is likely to disappoint many of the site's users who held assets other than bitcoins, warned Charles Hayter, chief executive and founder of digital currency comparison website CryptoCompare.

"What's disappointing is that the losses seem to be arbitrarily decided with larger operators being offered sweetners to keep them trading - and there is little clarity on BitFinex's company losses," Hayter told CNBC via email.

To compensate users, BitFinex is crediting each account with a digital token that will record how much the customer has lost as a result of the hack. These tokens will either be redeemed in full by the company in the future or they can be exchanged for shares in BitFinex's parent company, iFinex Inc. The statement did not specify any timeframe for the redemption.

"The convertible debt token is a way of kicking the can down the road and finding breathing space for the exchange - it opens up interesting trading possibilities with its junk status as well as a fair few legal ramifications," explained Hayter.

Hayter criticised BitFinex's latest attempt to deal with the situation.

"It's all been desperately scrambled together to give some form of closure - although a lot of their plan has not been fully fleshed out with details thin on the ground," he said.

ES Morning Update August 5th 2016

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The Job's Report:  "US created 255,000 jobs in July vs. 180,000 jobs expected"  Ok guys, this is very likely a "Sell the News" event.  We had a new FP show up yesterday on the SPY (which I posted in the chatroom), so if we start dropping today that might be our target.  I can't imagine traders being happy with the job's numbers as now they will be thinking... "Will the Fed's now raise rates earlier then thought since the economy seems to be better?"  And you know that question is going through their heads right now.

So, let's give the bulls a little running room in the early part of the morning as they might try to take out the stops above the 2170 level and even run to 2177.75 where the prior high was, but it should not hold.  Once all the stops are gone there's nothing left to support the market up at that level and it should roll back over later in the day... that's "if" it makes it up there in the first place, which seems unlikely to me, but I have to point it out as we all know how hard it is to kill the bulls.

As far as wave counts go I still think we had a wave 1 (or A) down from the 2177.75 high to the low of 2141.50, and that's where the wave 2 (or B) up started.  It should end this morning and start the wave 3 down (or C) that should take us to the FP target on the SPY, which is basically a retest of Tuesday low on this ES Futures chart.  If all goes well that wave down end up being just a smaller subwave of this wave 3 (or C) down... like a smaller wave 1, then possibly a late day bounce back up for the smaller wave 2 up, which leaves the smaller wave 3 down on Monday, inside the larger wave 3 (or C).  That's the wave that should break support in the 2140 area.  This all assumes SkyNet will play nice today and allow these nice wave patterns to work, which I can't answer of course.

Inside The Titanic II: Identical Replica Of Titanic To Set Sail In 2018

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Clive Palmer has an unsinkable dream: to have a replica of the Titanic set sail sometime in 2018. The Australian businessman first began planning the project in 2012, but the original launch was delayed. Now, 106 years after the untimely end of the ship’s namesake, the Titanic II is planned to embark on its maiden voyage from Jiangsu in Eastern China to Dubai.

“The new Titanic will of course have modern evacuation procedures, satellite controls, digital navigation and radar systems and all those things you’d expect on a 21st century ship,” assures James McDonald, the marketing director of Blue Star Line. For example, the new ship will have a 2,700 lifeboat capacity for its 2,435 member crew, as opposed to the original’s lifeboat capacity of 1,178 for its 2,223 passengers.

Grand staircase

Historically, the grand staircase was reserved for first-class passengers

Café Parisien

Built to look like a sidewalk cafe in France, the Café Parisien was also reserved for first class passengers

The Smoking Room, resembling a London gentlemen’s club, was a place for men to relax

The pool

On the original ship, the pool was filled with salt water after the ship had set sail

Marconi room, where “state of the art” technology allowed passengers to send messages

First class stateroom

The first class dining saloon

The first class dining room spanned the entire width of the ship

Second class cabins

Turkish bath, similar to a sauna

The bridge

Third class dining saloon, where passengers ate communally

The dining room’s menu changed daily

The original Titanic

Titanic II

Watch a video about the new ship below:


In case you forgot about the "reason" the Titanic was sunk in the first place I suggest you watch this video:

The Titanic (Olympic) was deliberately sunk to drown the opposition to the federal reserve in 1912 and on 1913 the federal reserve was created and than in 1914 world war 1 started financed in both sides by this federal bank by making money out of thin air in order to build a new world order for Jewish supremacy

What does this say for 2018 you ask? Possibly it's saying that a new Central Bank is coming to replace the Federal Reverse? I'm not sure really but "they" have something planned for this period I'll bet. Maybe it's the currency devaluation year? Just random thoughts...

Red

ES Morning Update August 4th 2016

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ES Morning Update August 4th 2016

Back to where we were again as the futures are riding the 2160 middle area of the 2150-2170 zone that the market has been in for going on 3 weeks now.  It's pretty clear the market is waiting on the NON-Farm Payroll Report, whose data is released Friday morning at 8:30 am EST, one hour before the open.  If the numbers are good traders will think that the Fed's will raise rates, and that won't make the stock market happy.

If the numbers are bad then traders will think that the Fed's won't raise rates, but it will also make them question the previous report in July that beat expectations by a large margin as any economy that was really starting to recover wouldn't have horrible numbers in June (missed badly), then great numbers in July, followed by bad numbers in August.  That could cause the market to sell off just as easily as beating the numbers would.  It's a "Lose Lose" deal for them as the best outcome would be to just meet the estimates, which would not shock the market.  But it wouldn't likely cause some big rally either.

The best I could see would be a brief pop higher again to just under 2200 on the SPX (maybe 2180-2190?) and then back down as there's nothing to get excited about up here at these high price levels when you are so overbought on most all longer term charts.  So if there's a pop higher it's a short in my opinion.

Now, what about today?  Looking at the 60 minute MACD's here on this ES Futures chart it looks like it's tired now from dipping to -5 yesterday and now back up to +2 or so.  All I can see is that it might ride along sideways today holding that +2 zone while the actually price of the market chops around too.

The 2, 4, and 6 hours are a little behind this 60 minute chart but by tomorrow they should all be "flat lined" in overbought territory as well.  Then if the NFP Report meets estimates then "possibly" we'll get a "fake out" pop higher that will very likely fade the rest of the day.  I don't what the "stat's" are but I know the old saying for NFP days... it's "Sell them if they pop, and buy them if they drop".  The reason is simple... the first reaction from the release of the numbers is usually wrong.  So the market does the opposite the rest of the day.

Of course if SkyNet has caught on to that little trick that smart traders know it could be changed I guess, but for now it's a common pattern that has worked many, many times in the past.  So for today we bears need to take a nap and just wake up Friday morning, and the bulls should be asking Aunt Janet for some more crack as it looks too me like the last high they got is wearing off now.

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